MercoPress. South Atlantic News Agency

US economy expands 2.9% in second quarter

United States economy expanded at an annual rate of 2.9% in the second quarter, above estimates, but still below the 5.6% of the first quarter of 2006 according to the latest release from the Department of Commerce.

While the new figure is an improvement from the original 2.5% estimate it is below the Wall Street's forecast of 3%.

The Federal Reserve voted earlier this month to halt its policy of consecutive interest rate rises, saying US economic growth, and therefore also inflationary pressure, were both now slowing of their own accord.

Analysts say higher petrol and other energy prices have been a key factor in the slowing level of US economic growth.

Another key element to gauge the possible future performance of the US economy: unemployment and job creation is expected to be announced in the coming days. Preliminary surveys indicate that during August 107.000 jobs were created which if confirmed would be higher than the 99.000 of the previous month.